DAVID Cameron is set to become Prime Minister following the collapse of Liberal Democrat talks with Labour on forming a coalition government.

The Tory leader has arrived at Conservative Central Office and is expected to hold a news conference once confirmation comes that Gordon Brown is to tender his resignation.

Events moved swiftly this afternoon with Labour conceding the game is up.

It is not yet clear whether there will be a formal Conservative-Liberal Democrat coalition but if there is, senior Lib Dems will sit around the Cabinet table and will have to accept collective responsibility for all decision reached in Cabinet.

This morning, the Tories accepted the Lib Dem proposal for the alternative vote system of electing MPs and this will be put to the country in a referendum.

Mr Cameron has been leader of the Tory Party since December 2005 and will be the first Conservative Prime Minister since 1997.